CMS advises international financial group on a bond issue
CMS has advised a company belonging to the international financial group International Personal Finance plc (IPF plc) on a bond issue at the Warsaw Stock Exchange. IPF is dual-listed on the London and Warsaw stock exchanges.
The new debt instruments, with a nominal value of PLN 200 million, were issued in a public offering without an issue prospectus. The bonds are listed from 29 June 2015 on the Alternative Trading System operated by the Warsaw Stock Exchange (ATS WSE) and BondSpot SA in Catalyst structure.
According to data provided by the Warsaw Stock Exchange, the value of issued bonds listed on the Catalyst market at the end of June 2015 amounted to PLN 67 billion, an increase of 1.2% year on year.
“Raising capital through the WSE may be a good way to diversify sources of financing, especially for companies with a good reputation and high ratings. In the case of companies operating in Central and Eastern European markets, listing on the WSE can increase their credibility on the local market. This is also true if they introduce their own securities to the market. For example, issuing company bonds on the Catalyst market involves obligations to disclose information, and this can increase the credibility of the entity, which is important, for example, in cooperating with financial institutions in negotiating loan agreements and working with local partners” says CMS’s Jakub Rachwol.
The IPF group specialises in making cash loans, and the funds it acquires through the bond issue will be spent on ongoing operations. The group operates in Poland, Lithuania, Romania, Bulgaria, the Czech Republic, Slovakia, Hungary and Mexico. It also operates digital services in Finland, Estonia, Latvia and Australia. In Poland, the International Personal Finance group owns Provident Polska SA.
CMS has advised companies from the IPF group for the past 5 years, including on the debut bond issue for a special purpose vehicle of IPF plc – IPF Investments Polska Sp. z o.o. – in Warsaw in 2010, when bonds with a nominal value of PLN 200 million were issued on the ATS BondSpot with a fixed redemption date set for 30 June 2015.
The CMS Polish team that worked on the bond issue was led by Małgorzata Chruściak, partner in the Banking and International Finance department, and included Dr Jakub Rachwol, Associate, and Rafał Kluziak, Associate.